Agenda item

Treasury Strategy Reports 2022/23 - 2025/26

Report of the Portfolio Holder for Finance.


Council considered a detailed report which provided Members with the necessary information to approve the Authority’s suite of Treasury Strategies for 2022/23 to 2025/26.


The report and appendices had been considered by Audit and Corporate Overview Scrutiny Committee at its meeting on 20th January 2022.


As in previous years, the Authority’s Treasury Management Strategy provided the framework for managing the Authority’s cash flows, borrowing and investments, and the associated risks for the years 2022/23 to 2025/26.  The Treasury Management Strategy set out the parameters for all borrowing and lending as well as listing all approved borrowing and investment sources.  Prudential indicators aimed at monitoring risk were also included. 


The Capital Strategy was intended to be a high level, concise overview of how capital expenditure, capital financing and treasury management activity contributed to the provision of the Authority’s services.  The report also provided an overview of the associated risk, its management and the implications for future financial sustainability.  The Capital Strategy set out the capital expenditure plans for the period and how they would be financed.  It also provided information of the minimum revenue provision, capital financing requirement and prudential indicators aimed at monitoring risk.


The Corporate Investment Strategy focused on investments made for service purposes and commercial reasons, rather than those made for treasury management.  Investments covered by this strategy included earning investment income through commercial investments or by supporting local services by lending to or buying shares in other organisations.


Councillor Peter Roberts raised a query in relation to how the Council invested its money, in particular around the bail-in and bail-out of banks.  The Section 151 Officer advised the meeting that criteria for the Council’s Treasury Management Strategy was carried out by Arlingclose, the Council’s Treasury Management Advisors, and the Council only invested where ratings were very low risk.  The bail-in or bail-out of banks and institutions had no part in the decision of where the Council invested.


Moved by Councillor Clive Moesby and seconded by Councillor Duncan McGregor

RESOLVED that (1) the Treasury Management Strategy at Appendix 1 to the report be approved and in particular;


a)    the Borrowing Strategy

b)    the Treasury Management Investment Strategy

c)     the use of the external treasury management advisors Counterparty Weekly List – or similar – to determine the latest assessment of the counterparties that meet the Authority’s Criteria before any investment is undertaken

d)    Approve the Prudential Indicators.


(2)  the Capital Strategy as set out in Appendix 2 to the report be approved and in particular:


a)    the Capital Financing Requirement.

b)    the Minimum Revenue Provision Statement for 2022/23.

c)     the Prudential Indicators for 2022/23 detailed in the Capital Strategy, in particular:


               Authorised Borrowing Limit          £127.888m


               Operational Boundary                  £122.888m


               Capital Financing Requirement     £117.888m


(3)  the Corporate Investment Strategy as set out in Appendix 3 to the report be approved.

(Section 151 Officer)



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